Which of the following is/are true regarding cost-plus pricing?
A) It encourages the manufacturer to operate efficiently.
B) It fails to consider competitors' prices appropriately.
C) It fails to guarantee the manufacturer a desired profit margin.
D) Only A and C.

Question

Quizplus · Accepted Answer

Cost-plus pricing focuses on covering costs and adding a markup, often ignoring competitors' prices, which can lead to pricing that is not competitive.

Which of the Following Is/are True Regarding Cost-Plus Pricing